THE IMPACT OF HYPERMARKET OPERATION TO LOCAL RETAILING BUSINESS IN BUKIT GAMBIR, LEDANG DISTRICT, DARUL TA’ZIM

INTAN ALYANI NAZIRAH BINTI WAHGIMAN

PC12051

SPINE LABEL:

ITM – INTAN ALYANI

BACHELOR OF INDUSTRIAL TECHNOLOGY MANAGEMENT WITH HONOURS

UNIVERSITI PAHANG

THE IMPACT OF HYPERMARKET OPERATION TO LOCAL RETAILING BUSINESS IN BUKIT GAMBIR, LEDANG DISTRICT, JOHOR DARUL TA’ZIM

INTAN ALYANI NAZIRAH BINTI WAHGIMAN

Report submitted in partial fulfillment of the requirements for the award of the degree of Bachelor of Industrial Technology Management with Honours

Faculty of Industrial Management

UNIVERSITI MALAYSIA PAHANG

January 2016

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SUPERVISOR’S DECLARATION

I hereby declare that I have checked this project and in my opinion, this project is adequate in terms of scope and quality for the award of the Degree of Bachelor of Industrial Technology Management with Honours.

Signature :

Name of Supervisor: WAN NAZRUL HELMY BIN WAN MOHD ZAIN

Position : LECTURER

Date : JANUARY 2016

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STUDENT’S DECLARATION

I hereby declare that the work in this project is my own except for quotations and summaries which have been duly acknowledged. The project has not been accepted for any degree and is not concurrently submitted for award of other degree.

Signature :

Name : INTAN ALYANI NAZIRAH BINTI WAHGIMAN

ID Number: PC12051

Date : JANUARY 2016

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TABLE OF CONTENTS Page

SUPERVISOR’S DECLARATION ii STUDENT’S DECLARATION iii DEDICATION iv ACKNOWLEDGEMENTS v ABSTRACT vi ABSTRAK vii TABLE OF CONTENTS viii LIST OF TABLES xi LIST OF FIGURES xii

CHAPTER 1 INTRODUCTION

1.1 Introduction 1 1.2 Problem Background 4 1.3 Problem Statement 6 1.4 Research Objectives 8 1.5 Research Questions 8 1.6 Research Hypothesis 8 1.7 Theoretical Framework 9 1.8 Scope Of Study 10 1.9 Significance Of Study 10 1.10 Operational Definition 11 1.11 Expected Result 14

CHAPTER 2 LITERATURE REVIEW

2.1 Introduction 15 2.2 Evolution Of Retail Business 15 2.3 Retail Business Concept 16 2.4 Retail Business Approach 17 ix

2.5 Factors Affecting The Development Of The Retail Business 17

2.5.1 Location 17 2.5.2 Consumer Behavior 18 2.5.3 Price 18 2.5.4 Economy 19 2.5.5 Customer Services 20 2.6 Hypermarket Concept 20 2.7 Factors Influencing The Existence Of Hypermarkets 21 2.7.1 Economy 21 2.7.2 The Trend of Consumer Purchases 21 2.7.3 Business Concept 22 2.7.4 Complications Shopping 22 2.8 Difference Form Competition In The Market 22

2.8.1 Healthy Competition 23 2.8.2 Unhealthy Competition 24 2.9 Previous Studies 24

2.9.1 Previous Studies in Country 24 2.9.2 Conclusion of Previous Studies in Country 27 2.9.3 Previous Studies in Abroad 27 2.9.4 Conclusion of Previous Studies in Abroad 31

CHAPTER 3 METHODOLOGY

3.1 Introduction 32 3.2 Research Design 33 3.3 Respondents 34 3.4 Data Collection Technique 34 3.4.1 Primary Data 34 3.4.2 Secondary Data 36 3.5 Designs For Interview Question 37 3.6 Analyzing Interview Data 38 3.6.1 Tape Recording 38 3.6.2 Taking Notes 38 3.7 Summary 39

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CHAPTER 4 DATA ANALYSIS AND FINDINGS

4.1 Introduction 41 4.2 Procedures Of Business Licences 43 4.3 Regulatory Frameworks With Regard To Hypermarket Operation In Malaysia 45 4.3.1 Concept of Prices in Hypermarket 45 4.3.2 Strategic Location 47 4.3.3 Safety and Health 48 4.3.4 Competition 48 4.4 Development Of Hypermarket In Malaysia 49 4.5 Socio-Economic Impact Of Hypermarket Operation To Local Community 52 4.5.1 Retail Business 53 4.5.2 Business Performance of Traders in Local Retailing Business, 2010–2015 54 4.5.3 Interpretation of the Bukit Gambir Shopping Behavior 55 4.6 The Important of Hypermarket Operation to Local Community 58

4.6.1 Improving Living Standards/Incomes of Local Community 58 4.6.2 Provide Employment Opportunities 58 4.6.3 Facilitate the Local Community to Purchase Goods 59

CHAPTER 5 CONCLUSION AND RECOMMENDATION

5.1 Introduction 60 5.2 Research Findings 60

5.2.1 Findings of the First Objective 61 5.2.2 Findings of the Second Objective 63 5.3 Limitations Of Study 65 5.4 Recommendation 66 5.5 Conclusion 66

REFERENCES 69 APPENDIX 72 Appendix A 72 Appendix B 73 xi

LIST OF TABLES

Table No. Title Page 4.1 Distances of Retail Business from Hypermarkets 52 4.2 The Number of Employed in the Hypermarket 56

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LIST OF FIGURES

Figure No. Title Page 1.1 Distribution Channels Goods and Services 2 1.2 Bukit Gambir map location 5 4.1 The simplified organizational structure of District 41 Council 4.2 Supermarket Sales and Number of Outlets (2003-2008) 48 4.3 Hypermarket Sales and Number of Outlets (2003-2008) 49 4.4 Supermarket Market Share, 2008 50 4.5 Hypermarket Market Share, 2008 51 5.1 Econsave Location 60